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Polish Interest Rates Kept on Hold

The Polish central bank’s Monetary Policy Council (RPP) have left interest rates unchanged at 1.5% in the country.

The official reason to keep the rate at a record low was to keep the country on a ‘sustainable growth path.’

In a statement issued by the central bank, it said, “In the opinion of the Council, consumer price growth will slowly increase in the nearest quarters, yet due to renewed decline in commodity prices, consumer price growth may be lower than anticipated.”

“So far, the continuing deflation has not had a negative impact on the decisions of economic agents. A gradual increase in price growth will be supported by closing of the output gap amidst improving economic conditions in the euro area and a tight domestic labour market,” it added.

“The Council decided to keep the National Banks of Poland interest rates unchanged, assessing that given the available data and forecasts, the current level of interest rates helps to keep the Polish economy on a sustainable growth path and ensure macroeconomic balance.”

Poland’s interest rate was cut by 50 basis point in March 2015 to a record low of 1.5%, and has remained there ever since.